Questions for brokers to ask clients to gauge exposure

With more states contemplating an expansion of the responsibilities of companies handling biometric data, the resulting legislation could lead to increased exposures for private and public companies and insurance providers. In assessing these risks, policyholders and brokers should review how the entity is obtaining, storing and safeguarding biometric information with an eye focused on:

Determining if and what biometric information is being collected: Under BIPA, biometric information can include fingerprints, voiceprints, retinal/iris and facial scans. If it is determined the information collected qualifies as biometric, then steps (including disclosures and storage) to handle and safeguard this information are required.

Biometric data storage policy: Does the policyholder have a clear written policy in place for handling employees' biometric information? What is the duration and purpose for which the biometric information is being used? Policies should include how long biometric information will be kept and when it will be destroyed.

Written consent: How or in what form is informed written consent obtained from new or current employees? Will written consent be administered and/or required as a condition for continued employment for all current employees?

Data safeguarding: Is the biometric information protected according to the same security protocols used for other types of personally identifiable information? Will it be stored internally or with a third-party vendor? Do contracts with third-party vendors that process or store biometric information address with specificity how vendors secure this data?

State law compliance: Is the policyholder prepared to comply with the applicable state breach notification laws in the event a security breach affects employees' biometric data?

Insurance carriers are monitoring biometric information privacy laws. If you have a question about this issue, reach out to your underwriter for more information.

Special Reports /

Evaluating biometric data privacy law exposures

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